4 Ways Black Families
Can Build Economically
As inflation rages out of control and a recession is fast becoming a possibility, Black families must learn how to adapt and come together to build their wealth in a declining economy. It takes more than one person to tow the line; every member of the household will need to do their part to find financial stability in the coming months. Let’s take a look at some practical ways the whole family can get involved.
Education
It’s not rocket science that Black families don’t get the education they need to make sound financial decisions. That is why Financial Joy School exists. We firmly believe that every Black and brown family deserves to know how to stretch their finances, invest wisely, and build generational wealth. This is not the job of dad or grandpa to play the stock market, but now is the time for the younger generation to invest, to save, to be smart about their money. The only way this fantastic future of generational wealth can be realized is to start now by educating our parents, our children, and even ourselves.
Tax Credits
Doing your homework and educating yourself includes knowing what you may and may not be eligible for when it comes to tax credits. See what credits are available and what you could qualify for before tax season. You might be surprised you qualify for credits such as the Earned Income Tax Credit, which helps moderate or low income families get a break on their taxes, or the Child and Dependent Care Credit, which helps offset the cost of childcare if you need it in order to work. There are many more credits. Be sure to check them out and see if any are right for you.
Invest Early
Don’t wait until you’re almost of retirement age before you decide to invest. In order to build generational wealth, investing must start early and be done often. Don’t be afraid to open retirement accounts for your teenagers or even yourself if you have never done so before. There is no time like the present to get started. The earlier you begin, the better off you will be. Decisions you make today vastly affect your life tomorrow. Even if you are only able to invest a few dollars at a time, anything is better than nothing. And nothing is more exciting than to see your investment account grow. Investing along with your children is an excellent opportunity to teach them about saving money and wealth in general. By making investing a family affair, you’re giving your kids an excellent head start in their own lives.
Pay With Cash
During hard times, it is so tempting to buy things on credit. Don’t. As much as you can, try to buy things with your own cash. While owning a credit card is not a bad thing in and of itself, getting in over your head with debt can vastly hinder your wealth journey. By denying yourself now, you are allowing yourself to build something much bigger and much better for your future. Use your credit card just enough to build your credit, but be frugal and keep your eye on the end goal of surviving hard times by building familial wealth.
To learn more about investing, closing the racial wealth gap, and growing generational wealth for Black and brown families, please visit Financial Joy School and become a part of our financial family.
